3 common misconceptions Southeast Asian business owners have about going global

The author is the Regional Director of Amazon Global Selling in Southeast Asia. The opinions expressed in this article are his own, and does not necessarily represent the thoughts, intentions, plans or strategies of his employer.

Photo credit: Tom Sodoge

Imagine opening a store in a mall. You sell the same products as the store next to you, except yours are 20 percent more expensive. You haven’t told anyone you opened the store, but you still manage to have a few customers walk through the door. You approach them, but realize they all speak a different language from you. How many sales do you think you would make? Would you go complain to the mall management that your business is failing?

It’s surprising how many businesses jump into selling on a global marketplace and expect results from Day 1. On one hand, I understand the excitement — global online sales exceed US$2 trillion, of which Southeast Asia represents only US$1 billion. While Southeast Asia’s ecommerce landscape is improving, closing the online spending gap will take time, so the benefits of going global are a no-brainer. But not every seller succeeds at this — mainly because so many assume that what’s worked in their home countries will work globally too. That is simply not true.

Below are the 3 most common misconceptions I’ve heard from Southeast Asian business owners when attempting to go global.

1. Selection

The misconception

Once you list, the sales will come.

The reality

As a seller, be prepared to expand your selections and work hard to keep your products visible.

• Everyone knows that adding selections based on seasonality makes sense, but only 10 percent of business owners actually do it — and they’re the best 10 percent. They source new costumes for Halloween or hunt for the hottest toy prior to Christmas. They keep their finger on the pulse for what people want and understand the key words people use to find those products online.

• If you stop at listing, it’s a good indication you are not committed to succeed. While a global marketplace provides the opportunity for increased exposure, your products sit among thousands of others; you still need to build awareness and drive trial through online campaigns. Sales do happen organically, but never at scale.

• Trial and error is the best strategy. List selections that are a mile long and an inch deep: let the consumers choose what they want. Sellers who list their top 10 locally bestselling products on a global marketplace rarely get it right. Consumer tastes and preferences are too varied.

2. Price

The misconception

People will pay a premium for my brand.

3. Consumer convenience